306 SIXTY-FIFTH CONGRESS. Sess. I. C11. 63. 1917. "·“* “‘;'j§{"°""'° Sec. 207. That as used in this title, the term "invested capital"
- 1¤ve¤Mf¤mu¤;{é’ for any gear means the average mvested capital for the year, as de-
°”“°‘° '°s ‘ fined an limited in this title, averaged monthly. Nenemune mms, As used in this title "invested cap§tal" does not include stocks, 2,°,,'{',;X§§{ "‘°°°’·°°°·· bonds (other than obligations of the nited States), or other assets, the mcome from which 18 not subject to the tax imposed by this title, nor moiney or other property borrowed, and means, subject to the a ove mitationsz `
um or (a)_ In the case of a corporation or partnership: (1) Actual cash
momér(%1§r:°p;ep· paid m, (2) the actual cash value of tangible property paid in other ,_,,;gf" " than cash, for stock or shares in such corporation or partnership, at the tune of such Jpayment (but ui case such tangible property was paid in prior to anuaxg first, mneteen hundred and ourteen the actual cash value of suc _ property as of January first, nineteen hun- Emed mmm md dred and fourteen but m no case to exceed the par value of the mbusnea. origmal stock or shares specifically issued therefor), and (3) paid in or earned surplus and un 'vided prohts used or employed in the busi- Pmmry ness,_exclus1ve of undividedapro ts earned during the taxable year: _rme me copy. Prgmgied, That (a) the actu cash value of patents and copyrights “$’“* paid m for stock or shares in such corporation or partnership at the time of such payment, shall be mcluded as invested capital, but not (,00,,,,,,, mmm to exceed the par value of such stock or shares at the time of such and other f¤t¤¤sib1¤§paymtorrrt,_?'nd (b) theri good will, tr;]4;iie·markst,h trade brarrrds, the ranc e 0 a corpora on or partne _ _ oro er mtangi e ro erty be included as mvested capitalif the corporation orlparril-_ nership_made payment bona fide therefor specifically as such in cash or tangible property, the value of such good will, trade-mark, trade brand, franchise, or mtangible property, not to exceed the actual Mrucggsgg, 1,,-;.,, to cash _0r actual cash value of the tangrble property paid therefor at 8* · ° · the tune of such payment; but good will, trade-marlgs, trade brands, franchise of a corporation or partnership or other mtangible propertg, bona fide purchased prior to March third, nineteen hundred an seventeen, for and with mterests or shares in a partnership or for mmmacn. and with shares in the capital stock of a corporation (issued prior to March third, nineteen_ hundred and seventeen), in an amount not to exceed, on March tlnrd,_ nineteen hundred and seventeen twenty venues. per centum of the total interests or shares in the partnershi or of triedtéoltal shares of the cplpital stogk of the corporaition, shallp be inc u in investe capit at a v ue not to excee the actual a l value at the time of such purchase, and in case of issue of sled]; Indmdum therefor not to exceed the par value of such stock; _ _ golrrpoplrrsle prop- (gi) the calseéar arr mdrvidrial, gl) optualfcpsh plaid mto the tradg _ or usmess,an eacua cas vueo angi epro rt ai my mto the trade or business, other than cash, at the time oflglich Say- ment (but m case such tangible property was paid in plrior to J anuary p,,m,,,, {,,,,,9;,,,,,,, first, mneteen hundred and fourteen, the actual cas value of suc °°°‘ °“*°' *¤°**“¤b*°=*· property as of January first, mneteen hundred and fourteen), and (3) the actual cash value of patents, copyrights, good will, trade-marks, trade brands, franchises, or other mtangible property, paid mto the trade or business, at the time of such payment, 1f payment was Valmtim made therefor specifically as such m cash or tangible property, not to exceed the actual cas or actual cash value of the tangible prop- Fmi@wmamm’ ertgl bona fide paid therefor at the time of such payment. eephme in Umm _ the cose of a foreign eorporatron or partnexsgp or of a non- $,,,,,5 resident alien mdividu the term rnvested cap1 ’ means that plrzpoxézion of ltiheil entire mvestpd capital, as dgiilnettgl and limited in t ti e w 'c thenetincome romsourceswit eU `tedSt t Commmiqu 0,mp,_ bears toithe entire net income. O _ e a as %¤'rs?1r;s¤ ¤d,s;¤!;; Seo. 208. That m case of the reorganization, consolidation or °,,,,,,,,,_ changle of ownership of a trade or business after March third, nineteen undred and seventeen, if an interest or control in such trade
